Division of the Budget Landon State Office Building Phone: (785) 296-2436 900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov Topeka, KS 66612 http://budget.kansas.gov Adam C. Proffitt, Director Laura Kelly, Governor Division of the Budget February 10, 2025 The Honorable Mike Petersen, Chairperson Senate Committee on Transportation 300 SW 10th Avenue, Room 546-S Topeka, Kansas 66612 Dear Senator Petersen: SUBJECT: Fiscal Note for SB 119 by Senate Committee on Transportation In accordance with KSA 75-3715a, the following fiscal note concerning SB 119 is respectfully submitted to your committee. SB 119 would increase the amount of motor vehicle fees retained for administrative expenses by county treasurers, division of vehicles, or contractors of such. The amount retained from each license application would increase from $0.75 to $5.75 and the amount retained from each application for a certificate of title would increase from $2.00 to $3.50. According to the Kansas Department of Revenue, enactment of SB 119 would result in a decrease to the State Highway Fund totaling $16.2 million. This calculation is based on the 2024 totals for license applications (2,977,568) and certificates of titles (842,891). The agency also states that administrative costs would increase by approximately $475 for workload related to ensuring proper distribution of the fees and $2,400 for the changes to fees in the titles and registration system. The Kansas Department of Transportation indicates that the enactment of SB 119 could require the agency to reevaluate planned Eisenhower Legacy Transportation Program expenditures due to the long-term fiscal effect of the reduction in revenue into the State Highway Fund. Any fiscal effect associated with SB 119 is not reflected in The FY 2026 Governor’s Budget Report. The Kansas Association of Counties notes that enactment of the bill would have a positive fiscal effect on county operations by helping to cover the costs of the Motor Vehicle Program. Sincerely, Adam C. Proffitt Director of the Budget cc: Lynn Robinson, Department of Revenue Jay Hall, Kansas Association of Counties Brendan Yorkey, Department of Transportation